Trades that performed best in the three weeks since Donald Trump's election victory are taking a breather, with the dollar and U.S. bond yields falling from recent peaks and equity index futures signaling stocks will slip from all-time highs.

The dollar could face further resistance in the week ahead given potentially risk-laden events such as the midweek OPEC meeting and Italy's Dec. 4 referendum on constitutional reforms.

"It is all based on speculation,” he tells Bloomberg. "The market has glommed on to the good news about growth, but not how challenging it would be to enact such a program or negatives like restrictions on trade.”

Ford is among the managers of the Fidelity Total Bond Fund (MUTF:FTBFX).

Three things could undermine the recent run-up in yields: the Fed's commitment to just a very gradual boost to short-term rates, the traditional aversion to budget deficits by a Republican Congress, and overseas buyers who may take advantage of lower prices to scoop up Treasurys.

Speaking to CNBC this morning, fund manager Stanley Druckenmiller - who had been pessimistic about the U.S. economy, said that he is now "quite, quite optimistic" on the U.S. economy following the election of President-elect Donald Trump. "It's as hopeful as I've been in a long time."

"I sold all my gold on the night of the election." Why? “All the reasons I owned it for the last couple of years seem to be ending", namely, expectations that inflation is now set to spike, forcing money out of safe assets - like gold and Treasurys - and into the dollar.

Druckenmiller said he now has a “large bet on economic growth. I’m short bonds, Bunds, Italian bonds, U.S. bonds.” The trades reflect his expectation of higher deficits and stronger growth leading to another surge in debt.

Druck said he is “hopeful” on the Trump administration and political climate. “I would not be surprised if we’re looking at the absolute peak of divisiveness.”

Standard & Poor's has given the all-clear to America's credit rating, affirming it at 'AA+' with a stable outlook.

"We assume the longstanding institutional strengths and robust checks and balances of the U.S. will support policy execution in a Trump administration, despite the president-elect's lack of experience in public office," the ratings agency said.

Moody's announced in September the election wouldn't impact its 'AAA' rating for the U.S.

Strategists are cautioning that a victory for either candidate could carry risks for Treasuries and the greenback.

A Clinton triumph would cement the already high expectations the Fed will raise rates in December, putting upward pressure on yields, while a Trump presidency would likely see Chair Janet Yellen excused from a second term.

With a path cleared for a Fed rate hike, the dollar is likely to gain momentum, but the full affects on the currency have been more ambiguous.

The Fed may be talking a tough game about a November or December move, but Manulife Asset Management's Megan Greene, says "lackluster" data means the central bank won't be able to justify a hike in 2016.

Noted by Greene: "Incredibly sluggish" average hourly earnings; the stronger the threat to hike, the more the dollar moves up as other central banks ease further; three jobs reports and a presidential election means plenty of uncertainty prior to the Dec. FOMC meeting.

Greene maintains her expectation for the next rate hike not to come until Q2 of next year.

Five-year Treasurys are completing their worst month since February 2015, but Morgan Stanley recommends buying the dip as the team there heard nothing at Jackson Hole that sways their view of no rate hike next month.

This week's August payrolls report presents an "obvious risk," say strategists Matthew Hornbach and Guneet Dhingra, but they continue to believe no move is coming in September.

The yield on the five-year note climbed to 1.24% in Friday, and has since retreated to 1.19%, still up a full 16 basis points in August.

According to JPMorgan, August jobs numbers have fallen shy of estimates in each of the last five years. The team at that bank continues to be a believer in five-year paper.

"I think there is a very large Hint here," says Mark Grant of Hilltop Securities, noting central bankers talk to each other and it's likely overseas central bank would not be jumping in to shortish-term paper in a large way if they had been tipped off about an imminent rate hike.

With $13.4T in Treasury paper out there, the U.S. government bond market is the largest and most liquid one in the world. But at least one fund manager worries whether he'll be able to get his hands on any in some future bull move. "The scarcity factor is there but it really becomes palpable during periods of stress when yields immediately collapse,’’ says Christopher Sullivan. "You may be shut out of the bond market just when you need it the most.’’

The Fed owns more than 20% of all Treasury debt outstanding, a near-double since before the financial crisis.

Meantime in the U.K., the BoE owns about 25% of that country's debt; the BOJ more than 33% of Japan's paper; the ECB about 15% of Germany's bonds.

Toss out paper with negative yields (20-year JGBs just went below zero), and there's not a lot of high-grade, positive-yielding paper out there. Those feeling the pinch the most are pension funds and life insurance firms. For this reason, money manager Nigel Jenkins expects any rise in bond yields to be quickly met with a wave of buying from the yield-starved institutions.

This month's FOMC meeting also brings with it updated economic projections as well as the dot plot showing Fed members' expectations of where the Fed Funds rate is headed over time.

Led by Ellen Zentner, the team at Morgan Stanley expects "sweeping changes" to growth forecasts and the longer-run nominal equilibrium rate - that's currently at 2%, but downward revisions from just three members would send it to a "one" handle.

Assessment of the longer-run neutral Fed Funds rate has been already been trending down, and downward revisions from four would send that to 3% from 3.25%.

As for the "dots," the median expectation for 2016 will remain centered on two hikes, but Morgan Stanley expects only a December move.

The medan dot for 2017 will fall to 1.625% (3 hikes) from 1.875%, and for 2018 to 2.375% from 3%.

The decline in the intended pace of hikes is likely to support the belly of the yield curve relative to the wings.

The Fed's Labor Market Conditions Index fell sharply in May in what was the biggest one-month decline since the end of the 2009 recession. April was also revised lower. The gauge has now fallen every month in 2016.

Jefferies' Thomas Simons says the index's declines in February and March stood in major to contrast to strong gains in the nonfarm payrolls data even though the two have a strong correlation. At the moment, it looks like the divergence is being resolved toward the weaker signal.

Then there's The Conference Board's Employment Trends Index (ETI). It also declined last month after gaining in April. The overall trend this year is flat after years of growth since the recession. The Conference Board's Gad Levanon says the number suggest modest employment growth in coming months, but fall well short of predicting job losses.

With May payrolls up just 38K and sizable downward revisions to March and April numbers, players in Fed Funds futures have quickly moved to price out nearly any chance of a June rate hike, with July also looking way less likely.

The July contract is up five basis points - a huge move for a nearby month - whittling down the odds of a June move to about zero. The August contract is also making a big move - up 7.5 basis points and pricing in a bit more than a one-in-three chance of a July rate hike.